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Committee considers amendment to allow unequal auto-loan payments; dealers and Ford support option
Summary
An amendment to remove the statutory requirement for substantially equal installment payments would permit flexible payment products (e.g., Ford Credit's FlexBuy) in New Hampshire; industry witnesses said the change levels the playing field with neighboring states and preserves consumer disclosures.
An amendment (2025-1243s) that would repeal a requirement that retail installment sales contracts have "substantially equal" periodic payments was presented and supported by auto dealers and Ford Motor Company representatives.
A representative of the New Hampshire Auto Dealers Association said dealers favor the amendment because the current New Hampshire law prevents offering some modern financing options available in other states; dealers told the committee they face a competitive disadvantage when customers can get alternative payment structures across state lines.
Michelle Elder, regional director for state government affairs at Ford Motor Company, and Vince Talia, regional manager for Ford Motor Credit, described FlexBuy, a financing product available in 43 states that uses lower payments for the first 36 months followed by higher payments later in the contract so the balance is paid off by term end. Talia said FlexBuy keeps fixed interest rates and provides consumers lower short-term payments, allowing buyers—such as recent graduates—to obtain vehicles they otherwise could not afford immediately. He said performance metrics for FlexBuy customers were similar to traditional financing in other states.
Tom Bouchard, a New Hampshire resident and Ford employee, told the committee he sees dealers and customers use the product as an extra option rather than a disruptive change in sales volume.
The New Hampshire Auto Dealers Association and Ford asked the committee to advance the amendment so New Hampshire consumers have the same financing options as residents in most other states. No committee vote was taken that day on the proposed change.
Ending: Industry witnesses emphasized consumer choice and competitive parity with neighboring states. They said the amendment preserves consumer protections and disclosure while allowing unequal-payment retail installment products to be offered in New Hampshire.
